Products or services that one country purchases from another are referred to as imports. Imported items vary; a product could be for consumption, reprocessing or even for re-exporting. In the U.S., there are two kinds of imports: domestic and international. Domestic imports refer to the purchase of goods and services within the country between different states. An example of this would be goods that are produced in the state of Texas and transported and sold to the state of Alabama. International imports include all goods and commodities imported from one country to another. An example of this would be when goods are importing from China to USA and sold to the United States.
With domestic imports, the tax levied on the goods is marginal but not completely absent, as the goods or services in question have been produced within the country itself. The tax levy is marginal because it poses no harm to the country’s industries. However, when it comes to international imports, each country tends to vary on the percentage of tax levied on different classes of goods and services. These regulations are decided by the government and are a component of a country’s foreign policy. This is done for a variety of reasons but primarily because it gives an advantage to the local companies.
The percentage of tax also depends on the nature and the use of the goods. For example, a tax levied on a super luxury car would be more than the tax for a life-saving machine. The need for the medical equipment is more and its purchase will help a larger section of the population.
In today’s world, imports are important as they not only increase the degree of specialization in different fields but also lead to greater interdependence between different countries and regions. This cooperation promotes harmonious relationships between different regions of the world.